Energy Company of the Year—large cap
Total's multi-billion-dollar acquisition of Danish firm Maersk Oil shows it is a company committed to building economies of scale and that oil and gas M&A was back with a vengeance.
The $7.45bn deal announced in August, in which AP Moller-Maersk will receive $4.95bn in Total shares while Total will take on $2.5bn of Maersk Oil debt, reinforced Total's position as one of the major players in the North Sea—and beyond. The deal is expected to close in the first quarter of 2018.
The firm's financial results show it is one of the most resilient of the oil and gas majors. Adjusted net income for the first nine months of this year was over 30% higher than a year earlier, at $7.7bn. Third quarter income was $2.7bn—a 29% rise from a year earlier. While 2017's higher Brent prices have helped, the company's average 10% return on equity and a sharp rise in upstream profits.
In the third quarter alone Total signed a historic deal for the development of the giant South Pars gas field in Iran, started up operations at the Al-Shaheen oilfield in Qatar, entered Mexico's retail fuel sector and expanded its presence in the green energy sector by acquiring a 23% interest in EREN Renewable Energy.